The New York estate tax is a tax on the transfer of assets after someone dies. The assets may include real estate, cash, stocks, or other valuable items. Several exemptions can reduce or eliminate the amount of estate tax you owe. This blog post will discuss the different exemptions and how they can help you save money on your estate taxes. Keep reading for more information!

What is the Basic exclusion amount on estate taxes in New York for 2022?

From January 1st, 2022 to December 31st, 2022, the New York Basic exclusion amount is currently $6.110 million per person. Each year, the price changes according to inflation. This means that if your estate is valued at more than $6,110,000 you are subject to New York estate tax, in the same vein - if your estate is valued at less than $6,110,000 you are not subject to pay NYS estate tax.

Does NY have an estate tax exemption for Spouses?

The federal government and New York State do not charge taxes on any property that the deceased leaves to their spouse. This is called the "marital deduction." However, there is a big difference between how federal and New York State handle this. The federal government lets you transfer any unused estate tax exclusion amount to your spouse when they die - New York State does not let you do this. Any unused amount of the New York estate exclusion may not be transferred and used by the surviving spouse.

Meaning - If you do not use the deceased spouse's exclusion by giving gifts to non-spouse beneficiaries or a trust, then you cannot use it in the future. This may happen if a spouse directs that their entire estate pass outright to the surviving spouse. When the surviving spouse passes away, he or she will only have his or her estate tax exclusion amount available, but none from the predeceased spouse.

Are there any exemptions for non-residents that own real property or assets in New York?

If the decedent is a non-NY resident and they own real property or tangible personal property in NY State, then that property is subject to the NY estate tax. The other assets of the decedent are not. This can happen if a non-NY resident owns real estate worth more than the exemption amount. However, there are numerous strategies like gifting or using trusts to prepare in order to prevent having to pay a NY estate tax on property owned by non-NY residents.

As you can see, the estate tax exemptions and rates are constantly changing. It’s important to stay up-to-date on these changes so that you can plan for your future accordingly. If you have any questions about how the estate tax will affect you or would like more information, please don’t hesitate to contact us. We are here to help!